- Company name
- Honda Motor
- Sector
- Motorcycles, automobiles and power products
- About
- Honda Motor (Honda) is a Japanese maker of motorcycles, automobiles and power products. It also has a large financial services business that gives loans and leases to buyers of its products. In the six months to September 30, 2026, sales revenue was ¥12.04 trillion. The Motorcycle business made a segment profit of ¥439.1 billion, the Financial Services business ¥211.0 billion and the Automobile business a loss of ¥5.8 billion, after losses related to electric vehicles (EVs). Honda reports under IFRS, and its fiscal year ends on March 31. Its shares trade on the Tokyo Stock Exchange, and its American Depositary Shares (ADSs) trade on the New York Stock Exchange. One ADS represents three common shares. The head office is in Tokyo. Toshihiro Mibe is Director, President and Representative Executive Officer.
- Thesis
- Honda's price already includes a recovery from the losses of its automobile business, which lost money while it cancelled electric vehicle (EV) plans. In the fiscal year to March 31, 2026, Honda had an operating loss of ¥414.3 billion and a net loss of ¥423.9 billion, mainly from EV-related losses, and the Automobile business had a small loss again in the first half of fiscal 2027. The Motorcycle business, with a segment profit of ¥439.1 billion in that half year, and the financial services business carry the profit, and Honda raised its fiscal 2027 forecast in August and November 2026. For the price to hold, three things must be true. The EV-related losses must end, so that the Automobile business returns to a clear profit. Hybrid vehicles must keep selling well in North America, where Honda plans a new $3 billion plant in Ohio from 2029. And the yen must not become much stronger than ¥155 per U.S. dollar, the rate in the August 2026 forecast. The Q3 fiscal 2027 report, expected in February 2027, and the fiscal 2028 forecast in May 2027 are the next tests.
- Risks
- More EV-related losses can follow. In the first half of fiscal 2027, Honda recorded EV-related losses and expenses of ¥479.2 billion in cost of sales, and its full-year profit forecast of ¥500.0 billion is below the first-half profit of ¥516.8 billion.
A stronger yen lowers profit in yen, because Honda earns much of its profit outside Japan. In August 2026, Honda raised its forecast mainly because it changed its yen assumption from ¥145 to ¥155 per U.S. dollar.
Trade policy, such as U.S. tariffs on imported vehicles and parts, can raise Honda's costs.
The financial services business has large financing liabilities, ¥13.91 trillion for the whole group at September 30, 2026. Higher credit losses or lower used car prices can lower its profit.
The ADSs follow the share price in Tokyo and the yen. A weaker yen lowers the value of the ADSs in U.S. dollars.
- Balance sheet
- Most of Honda's debt belongs to its financial services business, which funds loans and leases to customers and dealers. At September 30, 2026, total assets were ¥33.97 trillion, financing liabilities were ¥13.91 trillion, of which ¥4.95 trillion were current, and equity attributable to owners of the parent was ¥12.04 trillion, or 35.4% of total assets. Cash and cash equivalents were ¥5.50 trillion. There were 4,533,000,000 issued shares and 639,982,995 treasury shares. Honda plans an annual dividend of ¥70 per share for fiscal 2027, with ¥35 per share at the half year, paid from December 8, 2026.
As of Sep 30, 2026.
- Checkpoints
- Nov 10, 2026: H1 fiscal 2027 results: the full-year forecast. Passed. Watch: Results on track for the ¥650.0 billion operating profit forecast, or a higher forecast, pass; a cut fails. Outcome: First-half operating profit was ¥648.7 billion, and Honda raised its full-year operating profit forecast to ¥780.0 billion.
Feb 10, 2027 (estimate): Q3 fiscal 2027 results: EV-related losses. Pending. Watch: No large new EV-related losses and a kept or raised forecast pass; a cut of the forecast fails.
May 2027 (estimate): Fiscal 2027 results and the fiscal 2028 forecast. Pending. Watch: A fiscal 2028 forecast for operating profit above fiscal 2027 passes; a lower forecast fails.
- Recent events
- Nov 10, 2026: Honda reported results for the first half of fiscal 2027. Sales revenue rose 13.2% to ¥12.04 trillion, operating profit rose 48.1% to ¥648.7 billion, and profit attributable to owners of the parent rose 65.7% to ¥516.8 billion. Honda raised its full-year forecast to operating profit of ¥780.0 billion and profit attributable to owners of the parent of ¥500.0 billion, from ¥650.0 billion and ¥400.0 billion. The interim dividend is ¥35 per share.
Nov 9, 2026: Honda announced a new $3 billion auto plant in Ohio, with production from 2029, and more investments in Ohio, Alabama and Georgia. Its U.S. auto production capacity will grow to about 1.3 million vehicles a year, and its hybrid powertrain capacity in Ohio will rise by 250%.
Aug 31, 2026: Nissan and Honda signed a joint development agreement to standardize electronic control units and software for next-generation software-defined vehicles.
Aug 5, 2026: Honda reported Q1 fiscal 2027 results. Operating profit rose to ¥530.8 billion from ¥244.2 billion. Honda raised its full-year forecast to operating profit of ¥650.0 billion, mainly because it changed its yen assumption from ¥145 to ¥155 per U.S. dollar.
May 14, 2026: Honda reported fiscal 2026 results. It had an operating loss of ¥414.3 billion and a net loss of ¥423.9 billion, mainly from EV-related losses, and it kept the annual dividend at ¥70 per share. It also suspended indefinitely its plan for an EV value chain in Ontario, Canada.